Oil prices are rising slightly amid hopes of ending the war in Ukraine

Oil prices witnessed a slight rise today, Thursday, as investors evaluate the impact of talks aimed at ending the war in Ukraine, which may pave the way for the cancellation of Western sanctions on Russian supplies, but trading will remain weak due to the Thanksgiving holiday in the United States..

By 11:02 GMT, prices had turned from a previous slight decline to a slight rise, as Brent crude futures increased nine cents, or 0.1 percent, to $63.22 per barrel. US West Texas Intermediate crude futures also rose 19 cents, or 0.3 percent, to $58.84 per barrel..
Barclays Bank said in a note: “Geopolitical turmoil continues and hopes for a possible ceasefire between Russia and Ukraine offset the impact of supply concerns stemming from the possibility of new US sanctions being imposed on key producers in Russia.”
Three OPEC+ sources told Reuters on Tuesday that the alliance is likely to keep production levels unchanged at Sunday’s meeting.

Some members of the group, which pumps about half of the world’s oil, have been raising production since April to increase market share.
Oil prices received some support from increasing expectations of the Federal Reserve (the US central bank) reducing interest rates next month. A rate cut usually stimulates economic growth and boosts demand for oil.

“We are approaching the end of the year with less liquidity and no new stimulus unless the Federal Reserve surprises markets with a move toward monetary tightening at the Federal Open Market Committee meeting on December 10,” said Kelvin Wong, chief market analyst at OANDA.“.
He added, “The price of US West Texas Intermediate crude oil is likely to range between $56.80 and $60.40 per barrel until the end of the year.”“.

US envoy Steve Witkoff is scheduled to travel to Moscow next week with other officials for talks with Russian leaders about a possible plan to end the nearly four-year-old war in Ukraine.